Finance question
Can you consolidate ATO tax debt into your property?
Yes. If you own property, you can consolidate ATO arrears and other business debts into a single property-backed facility at single-digit rates. That clears the payment plan and usually cuts the interest you are paying, because the ATO's interest charge sits well above single-digit business rates.
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The short answer
Swap the ATO's interest for a single-digit rate
The ATO charges interest on overdue tax through its General Interest Charge, and it is meaningfully higher than a single-digit secured business rate. Staying on a payment plan means paying that higher rate and living with the risk the ATO defaults the plan if one instalment slips.
Rolling the balance into a property-backed facility swaps that for one predictable repayment at a lower rate, and often clears several debts at once. The one requirement is that you own property with equity to secure against.
On settlement the ATO is paid out directly, so the arrears are gone rather than carried alongside you. Any effect on your record is between you and the ATO, but the debt itself is cleared.
Do you qualify?
Who this consolidation route suits.
You own property
Property with usable equity is the hard requirement here.
ATO arrears
An outstanding balance or an active payment plan can be rolled in.
Other debts to fold in
Supplier and other business debts can often be consolidated too.
An ABN
New businesses are workable when property secures the deal.
Why consolidating can save you money
The ATO rate is high
The General Interest Charge sits well above a single-digit secured business rate, so the balance costs you more where it is.
One lower repayment
Consolidating swaps a fragile payment plan for a single predictable repayment at a lower rate.
Several debts at once
ATO arrears and supplier debts can be cleared together in the one facility.
A real example
A business is carrying $90,000 in ATO arrears on a payment plan plus $30,000 owed to suppliers. The director owns a commercial property with equity. Both debts are consolidated into one property-backed facility at a single-digit rate, the ATO is paid out at settlement, and two stressful obligations become one lower monthly repayment. Illustrative only.
Common questions
Frequently asked questions
Is this cheaper than staying on an ATO payment plan?
Usually, because the ATO's interest charge is higher than a single-digit secured rate. The exact saving depends on current rates and your balance.
Can I roll in supplier or other business debts too?
Yes, consolidating multiple debts into one facility is common.
Will this clear my ATO record?
Paying the balance out at settlement clears the arrears. Any effect on your record is between you and the ATO, but the debt itself is gone.
What do I need to qualify?
Property with equity to secure the facility, and an ABN. New businesses can work.